1) What is referral marketing?

Referral marketing is a strategy businesses use to encourage their current customers/clients/users to refer their services or products in their network by offering them incentives and benefits.

2) Why referral marketing is so important in today’s time?

Referral marketing allows customers to become your company’s advocates by recommending your brand to their friends, family, and acquaintances.

Referral marketing is indispensable because of the following reasons —

• Customers trust referrals — Research shows that people are four times more likely to buy when referred by a friend.
• Increased marketing reach — Referral marketing allows you to increase your outreach by expanding your client base through existing customers.
• Referral cost is almost zero— Word of mouth is a powerful driver of sales for any company and the cost is nil.
• Referrals bring more referrals — When someone buys goods or services from your company based on customer referral, they’re way more likely to tell others in the industry if they had a positive experience.
• Increase brand awareness and reputation — Referral marketing can help customers get to know your brand story and improve your overall reputation.